Chapter 17 Flashcards
1
Q
What are the disadvantages of investing in real estate
A
Illiquidity
Cannot get money right away
2
Q
Capital gain
A
When a property sells for more than purchase cost
3
Q
Do not have to pay capital gain up too
A
Single person -250,000
Married couple-500,000
4
Q
Equation for equity
A
Sales price / mortgage
5
Q
What type of risk is a fire peril
A
Static risk
6
Q
Operating expense ratio
A
Operating expense/ effective gross income
7
Q
Tax law allows to depreciate a portion of investment in resedential and low income investments for period of
And commercial?
A
27.5 years
39 years
8
Q
Appraisal of a business is also known as
A
Going concern value
9
Q
What type of asset is a trademark
A
Intangible asset
